How to pay estimated quarterly taxes to the IRS

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Get the IRS form 1040-ES here: www.irs.gov/pub/irs-pdf/f1040...
Watch the video showing how to calculate estimated taxes here: • How to calculate estim...
Timestamps for the video:
0:00 Introduction
3:20 Options for paying taxes
8:08 Where to mail checks?
9:30 Showing options on IRS payment website
15:45 EFTPS portal
Quarterly estimated tax payments are simply a way to prepay your tax debt. The IRS requires these if you are going to owe taxes as a small business owner. But when do you need to pay taxes and how do you make sure you are paying them the right way? Hannah will show you how to pay estimated taxes in 2022.
It's the year 2022, and the IRS gives you a ton of ways to pay them. Which payment method makes the most sense for you?
Don't get hit with penalties for misunderstanding and underpaying your taxes. Save money and stress by getting this right every year!
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Hannah Smolinski is a #CPA and the Founder of Clara CFO Group. Find out more about Clara CFO Group at claracfo.com/
Disclaimer: This video is intended for educational purposes and
should not be taken as legal or tax advice. You should consult with your financial professionals about your unique financial situation before acting on anything discussed in these videos. Clara CFO Group, LLC is providing educational content to help small business owners become more aware of certain issues and topics, but we cannot give blanket advice to a broad audience.

[@TrishaOHEHIR]

Thank you. The pay online option without creating an account was very helpful.

[@ClaraCFO]

great!

[@arboriststudyguide]

Thank you for this video ❤ I made my first payment "somewhere" and my accountant had to figure out where (it worked out fine). He made a video for me moving forward, but I'm definitely going to pass this onto others who are starting a similar business to mine. He's also agreed with your suggestions on making a separate account for "owner draw - equity" and paying out of your personal acct, which are other mistakes I've made. I'm looking forward to learning more

[@robertryan9821]

Herberto, since the LLC’s income will be included on your 1040 the tax on its income is included on your 1040. Pay the tax on Form 1040-ES by June 15

[@ClaraCFO]

Yes Herberto - what Robert said! You only have to make a payment from your personal side since your business earnings roll up onto your personal account! Thanks Robert!

[@bobb9709]

Nice video! I paid a 2023 estimated tax by IRS Direct Pay. I got the email confirmation number. The amount I paid was deducted from my bank account. I looked the payment up online using the confirmation number and my SSN. Does the Payment Status of "Originated" mean the IRS acknowledges receipt of my payment or should I see some other Payment Status such as "confirmed" or "received" etc. This is the first time I have used an online payment method. Thanks.

[@theworldisyours9097]

And what if previous year which is 2023 not yet availiable, and we have never submitted any declarations before that year because we have recently moved to the U.S?

[@schwil03]

I think creating an account is the best route, no room for errors.

[@nutria12247]

I agree. Also easy to find your payment history.

[@radcliffechris]

When using the EFTPS site to pay estimated taxes on a sole-proprietor LLC, what form should we use in the dropdown menu? I heard that a single member LLC is considered a "disregarded entity", so is it possible to pay estimated taxes on the LLC using your own SS number instead of the EIN?

[@kdawg8214]

Where do we file the 1040 ES when we make a payment, or is that not needed until the end of the year?

[@malibuman8941]

I gather it is the same for paying estimated taxes for the state

[@woofmeowdogwalking-catsitt7356]

Does anyone know how to pay 1120-W estimated quarterly tax payments?. I don't see the exact option for each quarter. Is it go under Federal Deposit Tax?

[@asnosestupidos]

Hi Clara, I am a new resident, since the beginning of 2022... I am a freelancer, I thought I didn't have to file any taxes until next year... and suddenly I saw that I was supposed to file quarterly... I'm freaking out. Am I in big trouble? Is this something it can be fixed?

[@zuspiro79]

Newbie here. So how does this work if you filed a personal return and a return for an LLC S-corp? Are we making estimated payments for the LLC and personal, or just the LLC?

[@jessicahayden6105]

Heberto, did you ever get this question answered? I would love to know as well!

[@samhavoc1066]

I am supposed to pay 15.3% social security/medicare on my earnings as an independent contractor. I cannot find information anywhere telling me how and where to pay. I sent it to the IRS last year, but according to a representative at SS, they aren't getting the money. Where am I supposed to by the SS/medicare?

[@kathysimindinger8753]

As an independent contractor, am I able to use the IRS app or portal to pay my taxes every 2 weeks or only quarterly ?

[@ClaraCFO]

You can pay as often as you like. We recommend saving money for quarterly tax payments in a separate savings account (maybe even earning some interest!), so that you are in control of the money for longer. But if you have a problem with spending the money when it's in your account, then maybe paying more often is a good strategy for you!

[@calmyourmind5665]

Do I still pay estimated tax if I got a refund last year? I started being an independent contractor June of this year, plus have a W2 job as well.

[@ClaraCFO]

Yes, you still owed taxes even if you got a refund - you received a refund because you OVERPAID on your taxes. So you need to estimate how much you are paying this year to see if you need to pay or not. It could be that your withholding from your W2 job is enough to cover your total tax liability!

[@calmyourmind5665]

Thanks!

[@LadyCatFelineTheSeventh]

Why would anyone pay their taxes early? This makes no sense. Just wait for April and pay all at once

[@ClaraCFO]

A lot of people won't have the money saved if they wait until April. And technically taxes are a pay-as-you-go system. You should be paying taxes closer to when the income is actually earned if you are a small business owner. But you can do whatever you want - it's your call.

[@schwil03]

To avoid overpayment penalty possibly